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Gourmet was founded by Mr. Nawaz Chatha in 1987 as a single outlet of a bakery unit. Over a period of two decades it has grown in stature and apart from excelling in bakery products it has introduced new trends in a variety of businesses such as restaurants and dairy products business. The main aim of the company is to provide quality products at a competitive price to its valued customers. To produce the best quality products, company has invested a huge amount of capital in placing state of the art technology to meet the demands of the customers. The company wants to increase its market standings by opening new outlets at key locations of the city. For any company market sustainability is very important and for this the company wants to break the monotony on a timely basis by introducing new products and enhancing the quality of current products through innovative ideas.

The company has a very comprehensive marketing program which includes both promotions and pricing. Promotions are generally made through POP, banners, brochures along with push strategy. Price is a key factor in the growth of a company. Gourmet has a very straight forward pricing strategy and is following cost leadership strategy. For bakery products the price ranges are uniform in all the outlets, but in dairy and restaurant business it depends on the income level of the target markets. In short the company is on a growth stage and they want to compete in the market in a positive way.

Company Description
Gourmet Bakers and Sweets is the largest food retail chain of Pakistan. It is based in Lahore, the second largest city of Pakistan known for its traditional foods and passion for eating. With their 4 processing units and 73 sales outlets plus 3 outlets are under construction they try to reach out to a huge population for their food needs. It was started with a single outlet in Ichra in 1987 by Mr. Muhammad Nawaz Chathha, in the begging they did not get good response which resulted in shut down. He again started in 1992 at different place at Muslim town, and Gourmet did not look back since then. Now with its 5

production units, 2 restaurants and 88 sales outlets, gourmet outreaches to a huge population for their food needs.

The company has shown an explosive annual growth of more than 25% till 2006 in its business since this unique business was started in 1992. Recently gourmet shows 65% of annual growth in its business from 2006 to 2009. With his commitment and strenuous effort to provide the consumers with best quality food products in a convenient and unmatched displaying manner, Gourmet has become a success story of business growth in Pakistan. At the moment Gourmet has more than 4500 employees working in the organization.

Mission Statement
The mission of Gourmet Bakers & Sweets is to provide quality products at a low price to be the market leader.

Vision Statement
The vision of Gourmet Bakers & Sweets is to be the leading health, wellness and nutritional company at national level.

Corporate Culture
The culture of Gourmet is certainly democratic where there is an open door communication between employer & employees. This thing creates a feeling of self respect within the employees and motivates them to work for growth of their organization.

One of the main objective is to facilitate customers by providing them with good service, good quality building good relationship and accommodating them in a best possible way. To improve the capabilities of our employees we give training sessions to them at operational level to make them understand how to deal with customers, helping them in making decision after knowing their needs. Our corporate culture involves in it a hygienic environment which is maintained everywhere i.e. from manufacturing plant to outlets.

Gourmet top management highly care for their employees rights to grow more by getting high market share because in their view growth of the company is directly proportional with the growth of employees and behind all this practice they want to get the brand recognition globally.


Director G.M Production G.M Market Assistant General Manager Area Managers

Branch Supervisor

Assistant Branch Supervisor

Complaint Manager/ Auditor Purchase Manager

Assistant Branch Supervisor


Store Supervisor
Store Supervisor

Sales Man

Strategic Goals
This section will cover the overall goals of Gourmet Company.

Non Financial Strategic Goals

To get the maximum market share by taking an advantage of our strengths of latest technology, own distribution, best quality with competitive prices by maintaining good relations with suppliers. To expand the business to other main cities of Pakistan in next 5 years. To be among the top companies in the food business. To introduce quality products for health conscious people. To build strong customer relationships by providing them quality products at the low cost. To build better relationships with supplier.

Financial Strategic Goals

Minimum branch revenue growth rate will be 10 % annually.

To double the annual sales in a period of five years. To reduce the cost of production by backward integration strategy. To increase the companys profits by maintaining the current customers through consistent
quality and low prices and getting new ones by opening new outlets.

To reduce the cost by reducing the wastages during the production and transportation.

Situation Analysis
Industrial Analysis
Gourmet produces good quantity and quality products. Gourmet has been in the food industry of Lahore for the last 26 years and is dominant in its industry because of having more market share than its competitors. Soon they will start a new product line of Carbonated Drinks in the next two months for which a better offering is needed in order to gain more share by attracting customers. Currently the whole world economy is moving towards deflation. Overheads are sky high that is affecting cost of product and is not giving much profit in return. This depression on world economy will slash down our GDP growth as well.

Several changes take place in the fruit juices distribution channels environment in Pakistan, a growing importance of foodservice, the penetration of the global beverage brands (mainly CocaCola and Pepsi) These changes are threatening and also bringing opportunities to companies

Competitive Analysis
Gourmet Cola has mainly two competitors in the market. These two competitors are Pepsi Cola and Coca Cola. Many other small ventures also exist in the market but they constitute to only about 5% of the share in the beverages industry. Key competitors include: Pepsi-Cola From around the 120 million soft drinks sales in Pakistan, Pepsi-Cola constitutes to about 70 million sales annually. Pepsi cola is the market leader of carbonated water in Pakistan. Pepsi offers a wide range of drinks. These include: 7Up, Miranda, Diet Pepsi, and Mountain Dew. These drinks are available in plastic bottles and tin cans. Varieties of sizes are also offered by the company raging from 175ml mini bottle to 2.25 liters jumbo-sized bottle. Pepsi does not have a specific outlet and can be bought from any shop or store in the city. Coca Cola is the second largest beverage industry in Pakistan. It constitutes about 30-35% soft drinks sales. Coca cola also offers a variety of products like; Sprite, Sprite 3G, Fanta, and Diet Coca Cola. Varieties of sizes are also offered by the company raging from 175ml mini bottle to 2.25 liters jumbo-sized bottle. Pepsi does not have a specific outlet and can be bought from any shop or store in the city.

Despite this strong competition in the market, Gourmet Cola can carve out its name in the industry. The prices offered by Gourmet Cola are sure to give us an edge in the market. Also the flavors offered by Gourmet Cola are different and will surely attract a variety of consumers.

Target Marketing
The people from income point of view is middle to low class is our target market. The product we are going to offer is suitable for which market. After analysis Gourmet found that the cities of Punjab are the market where there are more chances of growth of gourmets

new product. As the market is big and already have other brands but the opportunity is that the targeted customers are more interested in their local brands than international or other brands. As this is the targeted market so a major part of sales of gourmet mix fruits will be distributed to this market which will be approximately 60% and other 40% of sales will be distributed in other cities of Pakistan. The price would be reasonable as compare to its competitors and easily affordable.


Gourmet carries its image in a positive manner. In consumers perception Gourmet is producing hygienic products with high quality. Its packaging is perfectly according to the occasions. For the best quality and impressive representation of the events people prefer gourmet. 1. Brand Positioning: Gourmet Position their product in the mind of the consumers by offering: Superior in Price and Taste Quality Freshness Superior Quality Brand Name 2. Brand Image/Personality: Superior in Price and Taste Status Conscious (consumers perception) Strong Commitment No Compromise on Taste & Quality

Product Analysis:
The main product because of which Gourmet was able to make a name for it and has been continuing to go on and on is mithai and they are famous for it but their bakery products and beverages also give value to their customers.

Product Attributes/Features:
The products being sold at Gourmet carry the following attributes which are: Quality: Gourmet has been very careful and has been following a very strong standard for maintaining its quality so that customer is not complaining about its products. Since they are dealing in beverage products where quality plays a very vital role so they believe in quality good and healthy product to the customer.

Its another attribute which has been taken care of. In products such as mithai where people like that they get pure things specially in milk and better where there are chances that the customers dont get pure products. Gourmet has made sure that they use pure materials in making of the product so that when the customer gets it they dont feel that its not pure.


Food products all over the world are loved for their freshness and if we talk about products which Gourmet is selling they should be fresh otherwise customer wont purchase it. Gourmet promises to give fresh products to their customers by giving them those products which they feel are good and healthy to eat and if any product they feel is not fresh enough they wont give it to the customer.

Good Taste:
Taste is because of which a customer would love to purchase a product again if he likes the taste of your product. For so many years, Gourmet has been way ahead in the market and leading it on the basis of its taste and it promises to give good taste to their customer so that they enjoy it.

2. Benefits:

Same taste:
This is one of the biggest benefits of coming to Gourmet that the consumer will get the same taste whenever he purchases products from Gourmet its not that at one time the products will taste different and other time they would be different.

One of the strong aspects of Gourmet is that its sweet (mithai) has a unique and at the same time very nice taste which no other player in the market is providing.

Large Variety:
The customers can benefit from a large range and variety which Gourmet is providing them not only in its major products which is sweet (mithai) but lot of other products such as dairy products etc..

Macro-Environmental PEST Analysis

Political and Legal Analysis:
Political scenario in Pakistan has seen many important changes in recent years. The political environment directly influences all the industries working in the country. Similarly the production distribution and use of Gourmets products are subject to some federal laws, such as the Food and Drug Act. The businesses are subject to the Government stability in the countries as the businesses are directly subjected to the taxation policy of the country they are operating. They also have to comply with federal, state and local environmental laws and regulations.

Economic Analysis:
Despite inhospitable domestic and international environment resulting from the either the global recession or due to the terrorism acts, Pakistans economy grew by 2 percent in the financial year 2008-09 according to Economic survey 2008-09. Reports have shown increase in GDP, increase in per capita income and increase in IT development as well which are positive signs for the industry but there are some negativities as well. Like all the other companies are subject to the harvest of the raw material that they use in their soft drink and juice, like corn, oranges, grapefruit, vegetables etc. Gourmet also relies heavily on trucks to move and distribute many

of their products, fuel is a very important subject, so they are subject to the fuel prices. Moreover, there has been a crisis in the production of sugar in Pakistan, with prices sky rocketing. Another crisis that Pakistan is dealing is the shortage of electricity. Such economic factors have resounding impact on such industries and increase the cost of goods.

The population of Pakistan is on the rise where as the health consciousness among the people is also a lot more than it has been in the past. The age distribution of Pakistan is also very balanced, major portion of its population consists of youth. Gourmet bakery products, dairy products as well as beverages and moreover Juices and ice creams are subject to the lifestyle changes as the awareness of health consciousness is rising in the people now. This has affected the industry in the positive manner and many new companies are being entered in the food market, the usage of the food products in the households has increased a lot. The need for hygienic products and healthy products are in important in the average day-to-day life. Consumers from the ages 37 to 55 are also increasingly concerned with nutrition. There is a large population of the age range known as the baby boomers. Gourmet has to pay a special attention on the lifestyle changes. Further Income of people is increasing more trends towards FMCG. Further a major social trend in the rural areas of Pakistan has been a shift from presenting guests with drinks and bakery products such as lassi towards such beverages and bakery products. People use bakery products on different events new born babies, Basant, Shabraat, Eid milad-un-Nabi (s.a.w), Eid-ulFiter, Eid-ul-adha, Weddings, Engagement parties, birthdays, Father`s day, mother`s day, valentine`s day and get together. All these situations are calling for new and new opportunities and investors.

Technological Analysis:
Pakistan is considered as developing country. Although it is a nuclear power yet it lacks behind in other technologies. Technology plays a secondary role in this industry, as it is not heavily dependent on technological advancements like the consumer electronics industry, or the software industry. Because bakery and beverages products are non-tech based in nature, technology in this industry is therefore limited to function as a catalyst to improve production capacities, speed of product manufacturing cycles, inventory management. It has to pay attention to the new distribution techniques as well. Even though one have to take into account that specialized


factors involve a heavy and sustained investment, but also at the same time if one is able to achieve them, he could generate competitive advantage. The new technology of internet and television which use special affects for advertising through media. They make products look attractive and this help in selling of the products. Due to affective transport facility the company has achieved great success in distributing its products to all over the country.

SWOT Analysis:
Research and Development Center: By having a strong R&D center, Gourmet is offering a quality product to their customers. Gourmet is offering a product to their customer in different packing and according to different occasions. Well Organized Structure: Gourmet has a well organized structure. All the departments perform their work according to the organizational structure. 100% of production at Gourmet is carried out at automated plants. Computerized Database System: Gourmet has an organized database; all the activities are recorded in the database. Computerized database provides error free center. It is updated on the regular basis. Team Work: All the departments are working as a team such as Quality assurance, Marketing, MIS, HR and Administration etc. Working as a team increases the efficiency of the Gourmet. Low cost: Keeping costs lower than their competitors and keeping the cost advantages helps Gourmet Baker Pakistan pass on some of the benefits to consumers.


Supplier relationship: Supplier relationships are strong at Gourmet Baker Pakistan, which can only be seen as strength in their overall performance.

By applying the various strengths, Gourmet offers the product to the customer. Gourmet never compromise on quality that is why they are able to capture a huge market share. Sweet and other bakery products are prepared with immense care using traditional and authentic recipes to give unforgettable taste.

Customer Retention:
Gourmet is offering complete range of sweets, dairy, and bakery products to their customers with the best quality and taste. Gourmet is able to retain the customers because of its brand name and worth of the brand. As retaining the customer is better rather than switching towards the new customers.

Gourmet industry is not conducting as much advertisement as other brands are advertising their brands in Pakistan.

The first weakness of Gourmet cola is lack of advertisement and publicity. It means that the

Another weakness of Gourmet cola is that it is not often available in far away areas of Pakistan. In many cities of Pakistan mostly people are unaware from Gourmet cola. Lack of financial resources as compare to competitors like. Coca Cola and Pepsi. Moreover major part of its customers are the universities and colleges which shows that the general public customers are less in number this is because other brands are also available with more market share and goodwill than gourmet. Gourmet Company has weak distribution channels system as compare to their competitors. Gourmet is not considering many potential outlets like hotels, college canteens etc.


Gourmets brand name is known well throughout Pakistan today. The most important concern is that above the past few years has been to get this name product to be even better standard. Packaging changes have also affected determinant of productivity.

Product identification is the considerable factor affecting Gourmets competitive position.

The company can advertise and introduce its outlets in other cities of Pakistan to gain more market share. As population of Pakistan is increasing day by day, so there is great opportunity for gourmet to attract new customers. Company may start entering rural areas also. The company may also diversify its business in some other potential business. Increased interest of people in musical groups, cultural shows and sports has provided an opportunity for Gourmets to increase its sales through them. Expanding the product/service lines by Gourmet Baker Pakistan could help them raise sales and increase their product portfolio. Gourmet Baker Pakistan has a number of highly skilled staff, which is an opportunity for them to explore as expertise of their staff can help Gourmet Baker Pakistan to bring the business forward. `

One of the major threats that Gourmet Cola has to face is in the form of its two competitors; Pepsi and Coca Cola. These two companies have a very strong hold in the market and breaking their status is going to be very difficult by Gourmet Cola. Gourmet needs to market their company in cities where they do not have outlets to make consumers more aware about their product. Law and order situation of the country. Oil pricing in the country. Political instability. Electricity shortage. Extra competition and new competitors entering the market could unsteady Gourmet Baker Pakistan and be a threat.


The financial burden of increasing interest rates could be a threat to Gourmet. A slow economy or financial slowdown could have a major impact on Gourmet Baker Pakistan business and profits.

Product Mix


GOURMET took the challenge of making Pakistans biggest in-house Beverages Industry and built under the supervision of International Team. The thirst-quenching drinks of GOURMET are available in Cola, Malta, Lemon up, Apple and Ice-cream Soda, in six different sizes from 300ml to 2.25 liter. Currently GOURMET offer four type of beverages drink in different taste which given below


Lemon Up

Gourmet Cola


Bon Vivant Premium Cola


Pricing strategies are vital to Gourmet because the price decides the total of sales and earnings per unit sold. Businesses should have to set a price that is more attractive and smart to their patrons and offer the business with an excellent level of profit. Gourmet Cola is going to available in low prices with the prices ranging according to the size of each bottle. Price of the smallest bottle i.e. 300 ml will start from Rs. 25 and will continue to Rs. 60 for 2.25 liters. The price of the 1.5 liter bottle will be Rs.40. these prices are very low compared to other beverages. The company has implemented these prices to attract more consumers and to break the stronghold share of Pepsi and Coca Cola in the market.

Pricing Strategies and Tactics

In start of the business we focus on two main price strategies which is Penetration pricing and Discounts pricing strategy.

Penetration pricing
In Penetration pricing we set low prices as compare to our competitor, so that we can attract customers toward our products.

In this pricing strategy we will give special discounts to our customers on special days or occasions like Eid, Ramadan etc



This is the very critical and challenging factor for Gourmet Company to promote their products in a way very effective way. In starting of the business we use extensive advertising in big cities of Punjab like Islamabad, Rawalpindi, Gujranwala, Faisalabad etc. To get customers attention we use every method or way through which we can easily target our customers keeping view of our advertising budget. We use different Medias like In advertising we use Patriotic appeal that convey a message as national pride. We advertise our products as national products that can help us to get customers attention and increase our sales.

Electronic Media
We advertise our company products through electronic media. We give our ads on famous TV channels like GEO, ARY, PTV, etc. In rural areas of these two cities we focus on cable TV network because this media is less expensive.

Using this method we give a message that purchasing this product shows your love of your country.

Internet Advertising
We also use the digital or internet advertising because most of the population of Punjab have access to the internet. In this type we also use social networking sites like face book, twitter etc.

We also give our ads in Newspapers like Jung, express, dawn etc. We have chosen this media because of the following characteristic. Reach Affordability Flexibility & timeliness Impact and effectiveness



Billboard or Sign Board

We also advertise our products through Billboard or Sign Board in different areas of Punjab.


Gourmet Colas distributions strategy for the two year is very selective. Gourmet Cola will only be available in Punjab at first. This is to make the consumers more familiar with the brand. After this Gourmet Cola will be distributed all over the Pakistan. We also plan to arrange special payment terms for retailers that place volume orders. We use two important marketing strategies (Use of pull and push strategy) which will help us to increase our sales but our main focus is on push strategy.

Pull Strategy
In this strategy we use extensive advertising so that we can affectively communicate with ours customers and ultimately as a result of these advertising customers will demand our products.

Push Strategy
In push promotional strategy we use of a company's sales force and trade promotion activities to create consumer demand for a product. In this strategy the gourmet company promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers. In this strategy we special focus on rural areas because in rural areas customers are brand conscious less they only purchase which is easily available.

Market Segmentation:
Dividing the market (consumers) into minor groups with separate needs, features, or actions who might want separate products or marketing mixes. The division could be on the basis of geographic, demographic, psychographic and Behavioral methods. By the Gourmet products, we will use two segmenting strategies i.e. geographical segmentation and the life style segmentation.


Targeted Market
We will target the price conscious consumers, those who want good quality products at lower price.

Target market:
The product we are going to offer is suitable for which market: After going through comprehensive research study, we found that the city of Punjab is the market where there are more chances of growth of gourmets products. As the market is big and already have other brands but the opportunity is that the targeted customers are more interested in their local brands than international or other brands.

Moreover, we will approach/ contact the beg restaurants, shopping malls, famous food retail outlets, super stores etc for the display of Gourmet products. In short, we will make it possible that Gourmet products will be easily available at almost every retailing shop in Punjab. This strategy increase the intensity of Gourmet products in the market, and consumers will observe Gourmet products more often.


The Gourmet will perceptually position itself as a brand of price competitive and quality products. The physical positioning of Gourmet Beverages will be a low price local brand with good quality.

Marketing Budget
We have allocated 10 m for our marketing budget. We also increase our budge with the percentage increase of sales.


Future Plan
INSHALLAH after the successful of this plan we will launch our bakery products branches in all big cities of Pakistan, because this is one of the most renowned product of Gourmet. .

Marketing implementation:
After having a detailed discussion and planning gourmet comes towards the implementation phase of their marketing strategies. In implementation the companys formal organizational structure plays and important role. Managers not only focus on short term profits but they also consider long run market building objectives. On the other hand company also considers its culture in implementing a plan.

Marketing Control:
Gourmet focuses on two types of marketing controls operational and Strategic. In operational controls it checks that all the operations are in line with the current marketing strategies. Where as strategic controls focuses on long run and check the long run performance of the company. It also have an internal audit department which keeps a strict checks not only on its financial performance but also on its procedures and controls which effect in every day performance GOURMET beverage plant at Sunder, is counted among Worlds latest plants for beverages